Market returns are influenced by the variance between investor expectations and actual events. When reality surpasses expectations, markets tend to yield robust returns, while disappointing outcomes may result in lower returns. In 2023, the global MSCI All Country World IMI Index recorded a remarkable 21.6% return, three times its annualized compound return since June 1994.
Review Our Annual Market Returns Reports
Despite significant challenges like geopolitical conflicts and a US banking crisis, overall outcomes exceeded initial market expectations for the year. These outcomes underscore the importance of considering the variance between predictions and reality. As we approach forecasts for 2024, aligning predictions with actual events will likely impact stock returns, emphasizing the need to stay disciplined and tune out the noise.